Home Ownership Rates in Canada Still Among Highest Globally- CMT

Canadian home ownership rates have continued to be among the highest in the world, despite affordability and stress test concerns.

The most recent available data of 2016 cites a Canadian home ownership rate of 67.8% according to RBC Economic Research reports. For those 35 and under, more than 40% of own their own homes.

“We take issue with the notion that Canada has a home ownership problem,” reads the RBC report. “…the proportion of all Canadian households who own a home is one of the highest among advanced economies.”

The report does caution the government when considering affordability issues. Re-evaluating the stress test, extending amortization on default insured mortgages or increasing RRSP withdrawals for first-time home buyers are short sighted relief measures which does not address the issue of high levels of household debt outside of mortgages.

“[Those measures alone] do nothing to address what we believe is the root of Canada’s housing woes: gaps in the mix of housing options in some of Canada’s larger markets,” reads the report. “In our view, the longer-lasting remedy to Canada’s affordability crisis lies first and foremost on the supply side of the equation.”

In the Ottawa market, 66.6% of residents are household owners and supply has remained an issue for those looking to purchase.